Republic of the Philippines

SUPREME COURT
Manila
EN BANC

G.R. No. 122156 February 3, 1997

MANILA PRINCE HOTEL petitioner, 
vs.
GOVERNMENT SERVICE INSURANCE SYSTEM, MANILA HOTEL CORPORATION,
COMMITTEE ON PRIVATIZATION and OFFICE OF THE GOVERNMENT CORPORATE
COUNSEL, respondents.

FACTS:

The Government Service Insurance System (GSIS) decided to sell through public bidding 30% to 51% of
the issued and outstanding shares of the Manila Hotel (MHC).

In a close bidding, two bidders participated: Manila Prince Hotel Corporation (MPHC), a Filipino
corporation, which offered to buy 51% of the MHC at P41.58 per share, and Renong Berhad, a Malaysian
firm, with ITT-Sheraton as its hotel operator, which bid for the same number of shares at P44.00 per
share, or P2.42 more than the bid of petitioner.

Pending the declaration of Renong Berhard as the winning bidder and the execution of the contracts, the
MPHC matched the bid price  in a letter to GSIS. MPHC sent a manager’s check to the GSIS in a
subsequent letter, which GSIS refused to accept. On 17 October 1995, perhaps apprehensive that GSIS
has disregarded the tender of the matching bid, MPHC came to the Court on prohibition and mandamus.

Petitioner invokes Sec. 10, second par., Art. XII, of the 1987 Constitution and submits that the Manila
Hotel has been identified with the Filipino nation and has practically become a historical monument
which reflects the vibrancy of Philippine heritage and culture.

Respondents assert that Sec. 10, second par., Art. XII, of the 1987 Constitution is merely a statement of
principle and policy since it is not a self-executing provision and requires implementing legislation(s).

ISSUE:

Whether the provisions of the Constitution, particularly Article XII Section 10, are self-executing.

RULING:

Yes. Sec 10, Art. XII of the 1987 Constitution is a self-executing provision.

A provision which lays down a general principle, such as those found in Article II of the 1987
Constitution, is usually not self-executing. But a provision which is complete in itself and becomes
operative without the aid of supplementary or enabling legislation, or that which supplies sufficient rule
by means of which the right it grants may be enjoyed or protected, is self-executing.

Hence, unless it is expressly provided that a legislative act is necessary to enforce a constitutional
mandate, the presumption now is that all provisions of the constitution are self-executing. If the
constitutional provisions are treated as requiring legislation instead of self-executing, the legislature
would have the power to ignore and practically nullify the mandate of the fundamental law.

In fine, Section 10, second paragraph, Art. XII of the 1987 Constitution is a mandatory, positive
command which is complete in itself and which needs no further guidelines or implementing laws or rules
for its enforcement. From its very words the provision does not require any legislation to put it in
operation.